Hermit's Peak/Calf Canyon Claims Office Frequently Asked Questions

Why do the final regulations remove the requirement to prove permanent diminution of value of property, but not provide for temporary short-term diminution?

Under the previous regulations, either a property is sold at a loss before November 14, 2024, or the property value needed to be permanently lowered to qualify for compensation. However, because fire damage may require an extended period for natural recovery, FEMA revised this rule. The new rule permits compensation if the property's value has been substantially and enduringly reduced as a result of the fire in addition to providing compensation for an actual loss realized before November 14, 2024.

Why is there so much paperwork involved in the claims process?

The Claims Office is committed to ensuring the claims process is simple and minimizes the administrative burden on claimants. The level of documentation required is unique to each claim and depends upon the type and complexity of the loss being claimed. Claims navigators are dedicated to the delivery of consistent, equitable and fair compensation and are there to assist claimants with every step in the claims process.

Why is this process taking so much longer than the Cerro Grande payouts?

The Hermit’s Peak/Calf Canyon Fire, its impacts, and the population affected are markedly different from the Cerro Grande Fire, which occurred in Los Alamos in 2000. The Cerro Grande fire primarily impacted a suburban community with less complex types of losses, such as primary residences and property damage.

The rural nature of both Mora and San Miguel counties includes many more farmers, ranchers, and individuals who solely rely on the land and natural resources for subsistence and their way of life. As such, FEMA is exploring various methods of providing compensation to the communities impacted by the Hermit’s Peak/Calf Canyon fire and floods in a way that enables sustainable recovery and that takes into account the varied nature of the losses suffered.

This takes a little more time up front but will ultimately ensure that the needs of the affected communities and individuals are met.

Why were non-economic damages excluded?

The Claims Office cannot pay noneconomic damages because such damages are not authorized by the Hermit’s Peak/Calf Canyon Fire Assistance Act. The Act limits payment to actual compensatory damages, which include loss of property, business loss, and financial loss, and do not include non-economic damages. However, the Claims Office recognizes that individuals are suffering emotionally and psychologically as a result of the fire and in the final rule expanded compensation for mental health treatment for the entire period available to submit claims under the Act and to include conditions worsened by the fire.

Why won’t the Claims Office pay attorney fees?

The claims process is intended to be simple and should not require paid legal assistance, and the Claims Office is providing navigators and other support to assist claimants in identifying and documenting their losses. While the Act places limits on the amount an attorney or agent may charge, the Act does not provide for these fees as allowable damages.  Although the Claims Office recognizes that individuals have the right to hire third-party representatives such as attorneys to assist with their claims, the office believes that it is better to use the limited funding appropriated by Congress to pay compensation to claimants suffering losses as a result of the fire rather than to attorneys.